Reference no: EM132675509

Unit 7 Business Strategy - HND Business

Learning Outcome 1: Understand the process of strategic planning

1.1 Assess how business missions, visions, objectives, goals and core competencies inform strategic planning when formulating strategic plans
1.2 Analyse the factors that have to be considered when formulating strategic plans
1.3 Evaluate the effectiveness of techniques used when developing strategic business plans

Learning Outcome 2: Be able to formulate a new strategy
2.1 Analyse the strategic positioning of a given organisation by carrying out an organisational audit
2.2 Carry out an environmental audit for a given organisation
2.3 Assess the significance of stakeholder analysiswhen formulating new strategy
2.4 Present a new strategy for a given organisation

Learning Outcome 3: Understand approaches to strategy evaluation
3.1 Analyse the appropriateness of alternative strategies relating to market entry, substantive growth, limited growth or retrenchment for a given organisation
3.2 Justify the selection of a strategy

Learning Outcome 4: Understand how to implement a chosen strategy

4.1 Assess the roles and responsibilities of personnel who are charged with strategy implementation
4.2 Analyse the estimated resource requirements for implementing a new strategy for a given organisation
4.3 Evaluate the contribution of SMART targets to the achievement of strategy implementation ina given organisation.

Task 1

You have a very good business plan and are now seeking for finance. Recently you are to know that you can present your case to the Dragons den, BBC. Entrepreneurs pitch for investment in the Den from the Dragons, five venture capitalist are willing to invest their own money in exchange for equity. Regents College Academic staff has given you an opportunity to pitch before the staff and present your business plan before you pitch for investment in the Den from the Dragons.

You have been asked to provide a presentation for 15 minutes along with a word report approx 800-1000 wordsaddressing the LO1 and AC 1.1, 1.2 and 1.3 and assessed by your assessor. Your presentation will not exceed 15 minutes and will address all the AC for LO1.The key objective is to help you understand the process of strategic planning and will thus address the following points:
AC 1.1 Assess how business missions, visions, objectives, goals & core competencies inform strategic planning
AC 1.2 Analyse the factors that have to be considered when formulating strategic plan
AC 1.3 Evaluate the effectiveness of techniques used when developing strategic business plans
To achieve M1, you will make effective judgments about the value to your business plan of mission statements, vision statements, publicly stated goals and core strategies. To achieve M2, you will have used, explained and then evaluated the key techniques available to your business when you are developing strategic business plans.

Task 2

Purpose of this assignment
Students will be able to understanding the process of strategic planning, & the key elements of Strategic Position, Strategic Choices & Strategic Implementation. Students will apply all strategic tools to Volkswagen (VW). They will be required to evaluate the effectiveness of these tools and to put them to practical use through an examination of the VW & near & far environment. VW AG has a portfolio of brands and a trading presence in many international markets.

Scenario:
You are shadowing a strategic planner manager for a business improvement consultancy called New Phoenix. You have been asked to help Volkswagen Group (VW AG),with its' Strategic Planning in the light of the VW Emission Scandal.

VW AG is one of the world largest automotive manufacturing company. VW sells passenger cars under the Bentley, Bugatti, Lamborghini, Audi, Porsche, SEAT, Škoda and Volkswagen marques; motorcycles under the Ducati brand; and commercial vehicles under the MAN, Scania, Neoplan and Volkswagen Commercial Vehicles marques. It is divided into two primary divisions, the Automotive Division and the Financial Services Division, and has approximately 340 subsidiary companies. The company has operations in approximately 150 countries and operates 100 production facilities across 27 countries. VW has two major joint-ventures in China (FAW Volkswagen and Shanghai Volkswagen).

The US Environmental Protection Agency (EPA) said that Volkswagen had installed illegal software to cheat emission tests, allowing its diesel cars to produce up to 40 times more pollution than allowed. The US government has ordered VW to recall 482,000 VW and Audi cars produced since 2009. VW has admitted to fitting 11 million diesel engines worldwide with software that skewed the results of tests for nitrogen oxide emissions.

The Clean Air in London campaign is called for a royal commission to investigate VW activities in the UK. "Diesel is without doubt the biggest public health catastrophe in UK history causing 5,800 premature deaths per each year" said the founder Simon Birkett.

In a speech to 20,000 staff at the VW group's Wolfsburg headquarters, Matthias Müller the new CEO said all planned investments would be reviewed, while as the company struggles with the deepest crisis in its history.

"The commercial and financial consequences are not yet foreseeable," he said. "One thing is certain:

The burden will be big. Potentially very big."The global scam has wiped more than 40 percent off Volkswagen's market capitalisation and forcedformer chief executive Martin Winterkorn to resign.

Müller said the €6.5 billion the company had set aside in the third quarter due to the scandal were justthe start. "But it won't be enough. We must prepare for significant penalties. And many could take the events as an opportunity to claim damages against Volkswagen."In the United States alone, VW could face up to $18 billion (€16.05 billion) in fines.The car chief said the company was taking a second look at all planned investments, after VW hadannounced a €86billion five year investment plan last November.We are reviewing all planned investments once again," he said. "What is not absolutely necessary right now will be scrapped or postponed," Müller told staff, adding that "every euro that stays in the company helps us".

A VW spokesman confirmed the figure to AFP, after the company mentioned the figure in a letter toLawmakers.
All of this comes at a critical time for the incumbent car industry, which faces a historic threat from technology firms small and large. For Japanese, European and American car makers, the looming onslaught from Apple, Google, Tesla and the rest will prove to be several orders of magnitude more dangerous even than the rise of the Japanese car makers in the 1970s and 1980s.

Cars once contained zero electronics; today they are stuffed full of them. Eventually, cars will become computers on wheels. The incumbent manufacturers are very good at many things, but they will find it extremely tough to compete with the technology, vast pockets and design know-how of the likes of Apple.

Task 2: You have been given the task of preparing a report for the main board of the VW AG. The report must be written in a professional manner and properly referenced. The report should comply with the word count of 3000 words (± 10%). You may use tables and diagrams to support your report and to illustrate the text. Word count excludes the index, headings, information contained in tables, references and bibliography.

Your report will address the following as specified addressing LO2, LO3 and LO4 and the AC against each as specified below:
LO2 Show how VW AG can formulate a new strategy;.
AC 2.1 Analyse the strategic positioning of VW AG by carrying out an organisational audit
AC 2.2 Carry out an environment audit for VW AG
AC 2.3 Assess the significance of stakeholder analysis when formulating new strategy for VW AG
AC 2.4 Present a new strategy for VW AG
LO3 Understand the approaches to strategy evaluation;
AC 3.1 Analyse the appropriateness of alternative strategies relating to market entry, substantive growth, limited growth or retrenchment for VW AG
AC 3.2 Justify the selection of a strategy for VW AG
LO4 Understand how to implement a chosen strategy
AC 4.1 Assess the roles & responsibilities of personnel at VW AG who are charged with strategy implementation
AC 4.2 Analyse the estimated resource requirements for implementing a new strategy for VW AG
AC 4.3 Evaluate the contribution of SMART targets to the achievement of strategy implementation in VW AG

Attachment:- Business Strategy.rar